Home / Business and Economy / TSMC Invests $1B in AI Giants Amid Market Wobbles
TSMC Invests $1B in AI Giants Amid Market Wobbles
11 Nov
Summary
- TSMC is investing $1 billion in OpenAI and Anthropic.
- The investment includes $500 million in OpenAI and $500 million in Anthropic.
- This move is seen as circular financing within the AI industry.
Top chip manufacturer TSMC has approved plans to invest up to $1 billion in leading AI developers OpenAI and Anthropic. The investment includes $500 million for OpenAI preferred stock and another $500 million for Anthropic common shares, according to Reuters. This move comes as the AI trade experiences some wobbles, with analysts noting the rise of circular financing among investors, suppliers, and customers.
This interconnected financing makes it difficult to accurately assess real market demand for AI hardware and services. TSMC, which physically produces the vast majority of chips for AI workloads and Apple devices, has benefited enormously from the AI data center buildout, reporting six consecutive quarters of record profits. The company earned over $23 billion in profit during the July-September 2026 quarter.
TSMC's investment strategy fits into the broader trend of circular financing prevalent during the AI boom, even as tech stocks have recently experienced volatility. This is exemplified by Nvidia's substantial investments in OpenAI and Anthropic, totaling $40 billion so far. TSMC also operates fabs in Japan, China, and is expanding its US presence in Arizona, with a new fab under construction in Germany.
